Regulatory Update – SFSA has signalled its intention to strengthen crime prevention on the Swedish financial market.
Here is a comprehensive summary of the latest regulatory developments from the Swedish Financial Supervisory Authority (SFSA).
Enhanced crime prevention
On 25 August 2025, the SFSA published a report in response to a government assignment, outlining new measures to make it harder for criminal actors to exploit the Swedish financial market. The proposals reflect an increased focus on integrity, transparency, and resilience within the sector.
Key measures
The report highlights three main initiatives:
- Expanded licensing and ownership assessments. The SFSA intends to strengthen its gatekeeping role by further developing licensing procedures and enhancing fit-and-proper testing for owners and management, particularly in areas where the risk of financial crime is higher (e.g. payment institutions, e-money issuers and currency exchange providers). The aim is to ensure that only serious and suitable actors gain market access and to close gaps that can be exploited through nominee arrangements or insufficient internal controls.
- Data-driven supervision and AI. The SFSA will make greater use of advanced data analysis and artificial intelligence (AI) to detect irregularities, carry out risk assessments and direct supervisory actions more effectively. AI-based tools are expected to help identify fraud, warn consumers early and detect suspicious patterns that traditional methods may miss.
- Enhanced cooperation with other authorities. The SFSA will step up information-sharing with law enforcement, tax authorities and prosecutors. A new statutory obligation (2025:170) further strengthens SFSA’s duty to provide information to crime prevention authorities, reflecting the government’s focus on coordinated action against financial crime.
Practical implications for market participants
For financial firms, the report signals a shift toward higher compliance requirements. Companies will need to demonstrate robust internal governance, AML routines, risk management frameworks and the ability to remain resilient in the face of cyber risks and other operational challenges. The SFSA also underlines that ownership assessments will be tightened, with the authority seeking powers to intervene even in cases involving smaller ownership stakes, in order to counter nominee arrangements and other attempts to circumvent regulatory scrutiny.
The recently adopted legislative amendments mean that institutions such as currency exchange providers, certain payment service providers and e-money issuers will no longer be exempt from licensing requirements. All existing firms affected must apply for a license before year-end 2025 to continue their operations.
Safeguarding market trust
The overall objective of the proposed measures is to strengthen confidence in the Swedish financial market. By combining stricter licensing with AI-driven supervision, the SFSA aims to reduce vulnerabilities, limit opportunities for criminal exploitation and ensure a level playing field for legitimate market participants.
Read the SFSA report here.
